CHS plans propane terminal expansion to address pipeline changes

CHS Inc. plans to invest about $18 million to expand its propane rail terminal network in Minnesota, Wisconsin and North Dakota to address Cochin pipeline system changes, the company announced.

In April 2014, Kinder Morgan Energy Partners is expected to reallocate the Cochin pipeline that transports propane from Canada into the United States, creating a supply challenge for northern U.S. customers.

“We are exploring multiple options within each market area impacted by the Cochin pipeline reversal project, including expanding existing CHS terminals, building new terminals and growing our relationships with our industry partners,” says Drew Combs, CHS vice president of propane, in a press release.

CHS expects to have the expansion ready for the 2014-15 heating season, with some of the expansion potentially completed for the 2013-14 heating season.